Those massive share exchanges we saw was the dilution of our stock in
direct offerings and warrants in order to satisfy the debt to
Palisades:
"Under the terms of our obligation under the convertible debentures
due Palisades, we have pledged all of our assets as collateral on the
debentures, 2) we continue to extend the maturity date of the
debentures under terms unfavorable to the Company due to our inability
to full pay, 3) the terms of the debentures allow for conversions
into our Class A common shares at a price equal to the lower of 50%
of the average 10 day trading price prior to the conversion or $0.10
allowing Palisades to end up with a significant number of Company
common shares, thus diluting our other Class A common shareholders,
and 4) the terms of the warrants we granted to Palisades pursuant to
the settlement agreement allow Palisades to receive a significant
number of our Class A common shares through cashless exercises and
very discounted prices also causing the dilution of our other Class A
common shareholders."
AND, Palisades was the was the bulk of the outstanding debt:
"We have pledged substantially all of our assets, including our
patents, as collateral on the convertible debentures due to Kreuzfeld
and Palisades. As of December 31, 2008, we owed Kruezfeld $869,446,
and owed Palisades $4,446,617. Kruezfeld debenture matures on
December 31, 2011. Palisades debentures are due December 31, 2009. It
is unlikely the Company will be generate sufficient revenue by the
time the Palisades obligation becomes due and will have to rely on
Palisade to extend the maturity date or to convert the balance due
into shares of the Company’s common stock. If Palisades calls the
loan, the Company could be forced out of business".
SO THIS IS GOOD NEWS!!!! The company is not going to be forced out of
business, they have settled the larger portion of the debt and the
rest is due in 2011. Everything is lining up. All we need are
contracts/news and this explodes. Yes the dilution was about 72%
(assuming it is all done as today was the deadline for the debt
obligation, and look at the volume past couple days, shaers used to be
approx 70mil, now they are 120mil), but now we just need the revenue.
Some word from Brazil, the Bill passing or news of a contract will
move this huge - IMO.
AI
